The small businesses and consumer customers are key stakeholders who want exceptional, value based, services, which are competitive within the communications industry. Their interests are personal, as they want the best service, at the best, quality and value. They want what is available to others and by others for local, long distance and international telephone service.
The shareholders are ultimately interested in the value of their share as it has dramatically declined recently. They will hold the board and organization accountable. As shareholders they have varying interests and ethical dilemmas. It is individual, as to what they may value in holding the shares, and their ethics will also be varying. Some shareholders may not want to be responsible for laying off employees, or moving to another country. Some may only want to do what will increase their share value.
The Board of Global Communication is ultimately responsible and accountable to the shareholders, and for creating a successful business. Their interests are intertwined with what their shareholders want and what their market demands. They will also have very differing values and ethics.
The Executive Leadership Management for Global Communications is interested in meeting the organizations goals and values. They must ensure that the company operates smoothly and is in line with the strategic decisions. Their rights are as employees but their values will also be varied.
The employees of the organization, specifically the call centre representative, are key stakeholders in this situation. They will be affected by the implementation of the decision and plan. They will have varied values, but their rights as employees will be significant. They will exercise their rights through the union, if they are all unionized.
The last and final stakeholder group, made up of employees, but formerly organized, is the union. Their interests are in ensuring fair and equal treatment for them. Their collect rights will be significant, as previously mentioned. Their value will be fairness, honesty, and ethically sound.
Problem Statement
Global Communications aspired to increase share value by developing the tools required for successful decision making practices. In order to increase share value by 10% within one year, they must adopt organizational practices that include information gathering and research of market intelligence, create a governance plan, and lower operational costs by 15% moving the call centre to India and Ireland.
End-State Vision
Global Communications vision is to become the leading telecommunications organization by 2010, by leading in share value as compared to competitors’ share value. They may accomplish this further through a global market, in India and Ireland, and efficient operations reduced by 15%, while supporting employee retention and satisfaction, through effective information and research, governance planning, surveying, and a move to India within the next year.
Alternative Solutions
Based on benchmarking of other industry member competitors and other organizations that have attempted to achieve success while faced with similar issues, Global Communications had many alternative opportunities to create solutions to their problem. Bell Canada Enterprises is a competitor in the communications industry to Global Communications. They have achieved good share value and have managed to increase it (Bell, 2008). Global Communications can develop their decision making skills by adopting a governance plan that may include roles, responsibilities, and values. They may use this tool to engage their key stakeholders and assist them to know what is expected of them. With a better understanding of roles, responsibilities, business plan, goals, and values they will make stronger decisions that will lead to better operating business and translate to increased share value.
Additionally, Dell, was also able to achieve success in the global market and made a move to into India. They completed much research prior to making their decision to move into the Indian market, as well as to their ‘just in time’ approach to operation plants there (Kannan & Jagannathan, 2006). Dell supported the `Just-in-time' concept for India operations, which meant that a production base would enable the company to deliver products faster to its Indian customers. The decision of the "Just-in-time company" would likely open the gates for a wave of manufacturing, especially in the area of electronic items (Kannan & Jagannathan, 2006). They may also conduct more detailed research prior to making significant decisions like moving to India, and laying off their staff. They would have the opportunity to gain support of their decisions if they had more information to support their decisions. Global Communications can improve the predictability and the consequences of their actions, like Dell, thus leading to a more successful organization. “Uncertainty means that the manager has insufficient information to know the consequences of different actions” (Bateman & Snell, 2004).
The issues IBM faces include increased competition and issues surrounding outsourcing to offshore companies, which are similar to the issues Global Communications is dealing with. However, IBM is a strong company and the actions taken to prevent these issues have resulted in success and profitability. To reduce costs and improve efficiency IBM has expanded to markets in North America, Europe, India and China. IBM’s Indian based operations have increased revenues of 37% per year, and given IBM access to the Indian market (Datamonitor, 2007). The future prospects outsourcing of company services brings to the profitability and expansion capacities of the company are significant as is also projected for Global Communications.
Analysis of Alternative Solutions
Research and information gathering is an alternative that rates the highest on the scale and is the suggested first course of action. It will achieve at a score of four, middle to high, rating on all three goals; increase share value, market intelligence, and globalization. Dell Canada is an organization that can be benchmarked against Global Communications because of the similar situation and industry they are in. Dell researched and gathered much information in achieving their goals, particularly when they decided to move to India, as well. Global Communications can improve the predictability and the consequences of their actions, like Dell, thus leading to a more successful organization. “Uncertainty means that the manager has insufficient information to know the consequences of different actions” (Bateman & Snell, 2004). Dell seemed to have read the picture well as five million computers and service were sold annually in India. This number was projected to double in the next three to five years. Information gathering and research would enable better decision making which indirectly leads to increased share value with a better operating organization; it provides market intelligence, and also globalization efforts. This is the best alternative.
Making a move to India or a more global market, rates three for increasing market share, four for market intelligence, and four for globalization. This middle to middle to high rating is achieved and assessed at this level, because of the metrics that may be used to show significant advancement by the organization. A move to India may increase share value through increased market, and lower operating costs. It will provide increased market intelligence, as many other competitors have already moved to India. It will also move the company into a global operation. This alternative is the second best.
Alternative A to build a governance plan will achieve Goal A of increasing share value based on benchmarking other industry members in the same situation. Based on this information I rated the solution with a four on the middle to high scale in achieving the goals. It did not however, rate very high in achieving the other to goals, so it was not considered the first or optimal alternative solution.
For over a hundred years Bell Canada has served Canadians’ communication needs (Bell Canada Enterprises, 2008) and through this history as Canada’s leading communication organization, similar to Global Communications, they have had to deal with shareholder value. They have developed governance guidelines that assist in management decision making. “The process of considering multiple scenarios raises important “what if” questions for decision makers and highlights the need for preparedness and contingency plans” (Bateman & Snell, 2004). Bell Canada Enterprises declares that they are committed to sound principles of corporate governance, which guide their decision making and behavior and that make Bell Canada Enterprises (2008) accountable to their shareholders. In order to address share value issue, their guiding principles and governance structure includes accountability to shareholders and increasing share value through these guidelines. They have a proven track record based on their quantitative measurement of increased share value, even thought their market has not been at the top of its game. I feel that based on this, Global Communications can achieve increased share value by putting a governance plan into place. It will take some time to implement, and measurement should only occur after about a year.
Risk Assessment and Mitigation Techniques
Risk associated with building a governance plan is in not getting adoption and acceptance of the governance plan. It will be costly and timely because I believe that an expert is required. Acceptance and adoption will take time, as with any other change management. The consequence and severity of the risk and probability are very high. If there is no governance plan then the board and executive will continue to operate and make decisions that are not successful. It could lead to a break down in the organization as decisions are not based on equal grounds. New board members will have a hard time operating on the board without clearly stated rules. Mitigation techniques could include the use of a consultant or consultant group. While these specialists are viewed as high prices, over the long run they would cost the organization less than full time permanent staff. They can have expertise that will guide the process more efficiently and timely than someone in house. They may facilitate sessions to include stakeholders. They may form groups that could define the problem and collect data through brainstorming, analyze the data through affinitizing, multi voting, and evaluating and selecting potential solutions by using a prioritization matrix. Additionally Global Communications can develop an action plan for implementation through the use of a tree diagram (Janasz, Dowd, and Schneider, 2002). These problem solving tools will create more opportunity to looking a problems in a new way, and creating innovative solutions.
Information and research gathering may also be costly and timely, but may be lower in risk. There is good probability of available information. The use of teams may increase available information. Also the use of consultants can mitigate the cost and timeliness, like the above alternative. Teams will enhance decision making and critical thinking by establishing more available information, more perspectives and intellectual stimulation. This will enhance better decision making, understanding, and commitment toward change in an organization (Bateman & Snell, 2004).
Globalization is the highest risk but may be the most reward. It is rated second best as the alternative. Dell, Bell, IBM, and Saudi Aramco, all recognized that a huge decision like globalization and increasing business in other countries would have to be well planned and researched. They had much information regarding the potential market, the market demands, and expectations prior to moving to India. Furthermore Dell was able to create operations in India that impacted not only the globalization of sales, but cut costs so that prices to their consumer were reduced. Based on this research it was rated highly. There is much proven success in this industry to moving into India.
Optimal Solution
The optimal solution for Global Communications is to complete more research and gather information while also creating a governance plan that includes business planning, contingency planning, and communication planning. They have issues with decision making and problem solving. They do utilize their team effectively, and they do not communicate as best as they can.
Janasz, Dowd, and Schneider (2002), talk about problem solving, particularly, the cyclical process composed of the four steps; Plan, Do, Check, Act. These four steps are an easy process to remember when problem solving and should be used by the organization. By using these steps, they can define the problem and collect data through brainstorming, Analyze the data through affinitizing, multi voting, and evaluating and selecting potential solutions by using prioritization matrix. Additionally Global Communications can develop an action plan for implementation through the use of a tree diagram technique.
The process involved in decision making must be learned by the organization and can be documented through a governance plan. In particular, there is a nine step process that should be followed for successful decision making that will enhance decision making skills in any organization (University of Phoenix, 2004). I feel that by utilizing and remembering this process, Global Communications can contribute to a better decision making format, and lead to better decisions.
Decisions can be better made in a group but also you must be aware of when individual decisions are required. There are the pros and cons of making decisions in a group (Bateman & Snell, 2004). Teams will enhance decision making and critical thinking by establishing more available information, more perspectives and intellectual stimulation. This will enhance better decision making, understanding, and commitment toward change in an organization (Bateman & Snell, 2004). There is an equal opportunity to make decisions that are made individually and collaboratively at my organization.
Competitive benchmarking considers what is best among competitors in your industry in what they have done in similar situations (University of Phoenix, 2004), while generic benchmarking goes beyond looking at your own industry (University of Phoenix, 2004). The two are different approaches to decision making and problem solving based on information and experience as it relates to Global Communication’s issues. They are different because you may just look at your industry in competitive benchmarking, which will at times solve or resolve your problem. Based on issues that can clearly be similar to your problem, and the competition has made the information available for whatever reason. This is one difficulty in competitive benchmarking and it’s that they are your competition and might not share trade secrets of success but it has been show that there is information available like from Bell and Dell. While, generic benchmarking may consider commonalities between business functions across industries. This solution creates more unique opportunities to have innovative solutions and decisions to your problems that relate because of practice and not just industry. “Thought leaders generalize on best business and leadership practices” (University of Phoenix, 2004, P2).
Implementation Plan
The steps involved in implementing a plan for Global Communications can occur simultaneously. Building a governance plan, researching and information gathering, can and should be completed immediately. A consultant would be hired to facilitate both ventures. The board and executive should work to establish the guidelines of the governance plan based on their knowledge of the board. The board should also be involved in workshops to work as a group to establish the governance plan. At the same time a team should be working to gather information and research the industry and others bench markers based on the situation and scenario. The governance plan will take some time but some short term guidelines can be established as they move forward on their globalization. Research and information gathering is an ongoing endeavor that must be done throughout the duration of the organizations existence. Within the first month, however, there needs to be much more information on the decisions they have already made. They are in a crisis situation and must deal with that immediately. In order o gain support they must have all available information to sell to their organization and shareholders. A detailed report and communication plan must be implemented rather quickly. Once all available information and planning is completed within the first month, they must share this information in order to solve the problem or decision make. The organization must engage their employees and union, so that there is increased understanding as to why they made the decision they did, and to include them as key stakeholders in the process. This will increase the communication process that was not working very well. A communication plan to be completed in the next year will establish ground rules and assist in employees and union members in feeling connected with the decision making process.
In the end a monthly and quarterly monitor and reporting of goals achieved, potential problems and issues, must be established. These will keep everyone better informed and will dictate when a decision must be changed or tweaked or if it had gone off track.
Evaluation of Results
The main measurement will be increased share value of 10% at year end. It will be measured at a quarterly timeline but will not be assessed until year end. This is to ensure that all the plans have been implemented and all the communication has reached its intended audience. Share value may not increase significantly until all operational plans have been running for more than a year.
There will be quarterly business reviews presented to and from all key stakeholders quarterly but within the first month of implementation. This will show financial numbers and decisions being made. Individual decisions will be measured as they relate to qualitative or quantitative but will be established. These quarterly business reviews will be difficult to measure outside of quantitative data so it must be established early what the qualitative measurements will be. They must be validated and reliable, so this must also be established and clearly outlined to the report generators. They must be held accountable for SMART actions. They must be challenged to be specific, measureable, attainable, and realistic.
Reporting on globalization will be quantitative as well as qualitative. There will be financial measures in place to see if they are in line. There will also be in formal measures of acceptance and cooperation with staff that is important to the move to India. The measures will be difficult because the move will take time to establish and there will be many bumps along the way. In order to mitigate this it will be important to have contingency plans. It will also be important to meet and communicate regularly. Staff/employee survey’s will be conducted to measure satisfaction. As well as with shareholders, and consumers.
Finally the last evaluation of results will show in the financials. At first a weekly, monthly, then quarterly monitor must occur. As the share value is declining, and the end state goals of lowering costs to the operation are stated, then they can be clearly measured by the financials of the organization. A clear understanding of the costs to implement and improve the situation must be taken into consideration.
Conclusion
Global Communications can improve their organization by stepping back and correcting the major errors in their decision making and problem solving approaches. The must learn a better and much improved organizational communication practice. More information and planning will move them toward the goals they must clearly identify.
The position they are in must be rectified by the suggested gathering of information. They must form working team with key stakeholders and identify the untied goals. They must include the stakeholders in the problem solving and selecting process, so that implementation may be easier and accepted. By using teams they may garner even better solutions. Communication must be also learned and practiced. Leadership must not forget to work in the trenches to know what is going on their organization. Once Global Communications improves upon these issues, the gap will lesson and they may be in a better position to compete with increased competition, move into a global market, lower overhead costs, and increase share value.
References
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Bateman, S. & Snell, S. (2004). Management: The new competitive landscape. (6th ed.). [University of Phoenix Custom Edition e-text]. New York: McGraw-Hill. Retrieved February 28, 2008, from the University of Phoenix, rEsource, MBA500-Goundations of Problem-Based Learning Course Web site.
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University of Phoenix. (2002). Guide to Completing the University of Phoenix Learning Team Charter. Retrieved February 28, 2008, from the University of Phoenix, Course Map, rEsource, MBA500-Foundations of Problem-Based Learning Course Web site.
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University of Phoenix. (2004). Scenario: Global Communications. Retrieved March 12, 2008, 2008, from the University of Phoenix, Course Map, rEsource, MBA500-Foundations of Problem-Based Learning Course Web site.
Table 1
Issue and Opportunity Identification
Table 2
Stakeholder Perspectives
Table 3
Analysis of Alternative Solutions
Note: The table format varies from APA standards in conformity with guidance contained in the preface to the APA Publication Manual, 5th edition.
Table 4Risk Assessment and Mitigation Techniques
Table 5
Optimal Solution Implementation Plan
Table 6
Evaluation of Results
